The Bottom Line:

• Better-for-you benefits continue to draw consumers
• Shoppers hunt for reduced-sugar, high-protein, and clean-label options
• Producers seek to hold consumer interest with new and novel flavors.

The “breakfast/cereal/snack bars/clusters” subcategory was up 2.5%, to $2.1 billion. Kellogg Co. (now Kellanova) led the pack at $699.5 million, down 1.1%. Others at the top were Kind ($268.7 million, a10.7% decrease) and private-label brands ($153.9, a 0.2% drop compared to the previous year).

Then, in the “granola bars” subcategory, sales were up 4.9% to $1.7 billion but there were some notable increases enjoyed by several players. Up-and-comer Junkless sales rose 65.3% to $20.6 million, Purely Elizabeth climbed 64% to $5.8 million, and MadeGood increased 47.2% to $63 million.

Trends

“Consumers continue to expect more from their food, including healthier options and functional ingredients,” remarks Britt Williams, director of portfolio marketing for portable wholesome snacks, Kellanova. “This has led to a surge in demand for bars that are higher in protein and contain natural and wholesome ingredients, for example. Many consumers are also seeking bars that have a short ingredient list.”

Better-for-you items across all food categories continue to draw in consumer interest, and dollars. The bar category, says Barebells Marketing Activation Manager Caitlyn Johnston, is no exception.

“Consumers are increasingly looking for healthier alternatives to candy and other traditional snacks,” Johnston observes. “Barebells provides that alternative with no added sugar, and a good amount of protein, but without sacrificing flavor or texture. That is why I believe we stand out among both candy bars and protein products. Our soft bar range (including Banana Caramel and the most recent Minty Chocolate) takes this one step further by delivering an unparalleled soft texture and candy-like taste, still with protein and no added sugar.”

Linda Zink, chief growth officer with Simply Good Foods, says consumers are looking for a combination of low carbs and reduced sugar, a heaping helping of protein, and great taste.

“The protein bar market continues to grow as more and more consumers are looking for healthier snacking options,” Zink shares. “At Simply Good Foods we are always innovating and adding new forms, textures and flavors to deliver exactly what our consumers are looking for with our Atkins and Quest brands.

Lior Lewensztain, founder and CEO of That’s It, says clean-label products continue to be a draw.

"Consumers are increasingly gravitating towards snack bars with simple, clean ingredients that are easily recognizable and free from artificial additives, colors, dyes, and natural flavors. Another notable trend is the rising preference for bars catering to a variety of dietary restrictions, food allergies, and intolerances, including gluten-free, dairy-free, and nut-free options. Finally, consumers are becoming more savvy with reading both front and back labels of packaging for transparent and easily understandable nutritional information. Fortunately, That's it. Snacks meet all these criteria."

On top of high-protein options, Zink adds, “Consumers are looking for easy ways to add fiber to their diet, and both the Atkins and Quest bars provide this super nutrient.”

Katie Eshuys, That’s It chief sales and commercial officer with That’s It, observes, "As far as sales go, there's been a significant expansion in functionality, encompassing aspects like gut health, mental well-being, and clean energy. Simultaneously, consumers are showing a preference for multipacks and larger value bundles, driven by heightened price sensitivity during an extended period of inflation. According to Circana's 2023 Snacking Universe report, the surge in multipack popularity can be attributed to several factors. Family member needs, affordability, portion control, convenience, and the desire to prevent food wastage are key motivators behind the choice of multi variety packs. That's it multipacks are witnessing double-digit growth, fueled by an expanded assortment and increased distribution.”

Julia Shapiro, vice president of brand, Aloha, remarks that while consumer demand for healthy snacking options marches on—with high-protein, plant-based, and portion-controlled items among their targets—their interest in health goes beyond their own bodies.

“We’re seeing an increased focus on holistic wellness,” Shapiro says. “This means consumers are not only looking for products that are better for them physically and mentally, but are also better for their communities and the planet, as a whole. There is an increased emphasis on responsibly-sourced ingredients and increased affinity for companies that are willing to make a larger commitment to sustainability.”

Zink says bars face a bit of competition from other BFY products, like protein shakes, but there are still plenty of opportunities in the field.

“Some brands are experiencing softness, but the consumer need for protein continues to be present and the key to growth is innovation—providing new and interesting products that deliver on consumers’ needs,” she surmises. “Our Quest Bar business is leading growth in the Active Nutrition space. Exciting new innovation within the Atkins brand, like the Soft Baked Bar that was recently launched, brings a new texture to the aisle and it is performing very well out of the gate.”

Innovation

To ensure they provide consumers with bars that resonate, bar producers gauge their interests and behaviors in myriad ways.

“Kellanova recognizes that consumer trends evolve; to meet these demands and capture market share, Kellanova invests in a variety of tools to keep a pulse on the industry,” Williams intimates. “Kellanova uses a combination of both qualitative and quantitative tools to keep up with the latest consumer preferences and behaviors, including syndicated trend resources, food and flavor trends monitoring, social media feedback, consumer immersions and ethnographies, brand health tracking, consumer buying, eating, and snacking panels, custom surveys and point of sales data trends.”

Aloha also keeps its finger on the pulse of consumer behavior by harnessing a range of tools, including those found in the digital realm. Shapiro says, “As a digital-first business we’ve built a strong and engaged community on Aloha.com, which encourages an ongoing dialogue with our consumers. We get input on everything from marketing to new flavor launches. Our social media channels (mainly Instagram and TikTok) have also proven to be useful platforms for keeping up with the zeitgeist—following conversations and watching trends.”

Johnston reports Barebells shares a similar digital approach to consumer observation and engagement.

“For us, it’s important to keep a strong presence on social media where we can keep an open dialogue with customers and consumers, and stay updated on current trends,” Johnston reports. “We also consider local preferences and trends for each market, and have launched several tailor-made flavors, such as the limited-edition pumpkin spice bar for the U.S. and the licorice bar for the Nordics. From time to time, we also launch seasonal products, such as the Holiday Calendar. Last but not least, it should also be mentioned that we only launch products which we enjoy ourselves.

Williams says while bar producers deliver on BFY benefits, they cannot forget the desire for appealing, creative tastes.

“Flavor innovation has also become a significant aspect of the bar market, and producers must continue experimenting with unique flavors to capture consumer interest,” Williams advises. “That’s why Kellanova Away From Home recently released the new RXBAR A.M. Peanut Butter Dark Chocolate, which features a soft and crispy texture, balanced with rich dark chocolate and salty-sweet peanut butter. We also have other flavors like RXBAR A.M. Honey Cinnamon Peanut Butter and RXBAR Chocolate Sea Salt.”

Aloha’s recent product innovations include items that tie into interests and ingredients based in its home state of Hawaii. “In 2023, we launched our first special edition bar; the Kona Bar,” Shapiro shares. “Made with 100% Kona Coffee from one of the oldest coffee farms in Kona and Hawaiʻi-grown and harvested macadamia nuts, this bar features unique ingredients produced using regenerative farming practices. Ten percent of proceeds are donated to Kupu, Hawaiʻi’s leading youth-focused conservation non-profit, to support Maui relief and environmental education programs.”

What’s next

Many bar producers are working on growing their market share on a number of fronts, including new products and increased retail reach.

“Barebells’ goal is to provide great-tasting protein bars to ever more consumers and outlets all over America,” tells Johnston. “We have recently launched at big retails such as Walmart and CVS, but still see much untapped potential in the retail universe. While we won’t disclose upcoming launches beforehand, we continuously release new flavors to be able to satisfy all cravings out there; something we’ll definitely will continue with during 2024.”

Zink says on top of product launches Simply Good Foods introduced last year, 2024 will include more new stuff from its brands.

“The following new bars will be hitting shelves in March for our Spring Launch: Atkins Peanutty Overload Bar, a new and improved version of Atkins Cookies and Crème Bar, Atkins Lemon Wafer Bar, Quest Apple Pie Bar, and Quest Dipped Chocolate Peanut Butter Bar,” she says. “We’re very excited to continue to give our consumers delicious new flavors and textures across the Atkins and Quest brands.”

Shapiro says Aloha has a list of creative developments in the works to watch out for. “While I can’t share too much, stay tuned for some exciting new limited edition flavors in 2024, as well as our second special edition impact bar, featuring new ingredients from Hawaiʻi.”

Williams advises current trends at play (convenience, BFY attributes, snacking adventures, and more) will continue to impact the bars category.

“Consumers are looking to level up their snack experience and are continuing to expect more from food including healthier options, intriguing flavors and easy on-the-go options,” she says. “Kellanova strives to meet the needs of current and future trends with its product assortment and hopes to continue offering incremental innovation in the space.”